Company comps are companies that are comparable with or peers of the company you are valuing.
Criteria used to generate a list of comps may include one or more of the following:
Once you've generated an initial list of comparable companies, you can then define variables - financial multiples, averages, ratios and benchmarks - to further refine this list.
Both FactSet and Bloomberg will automatically generate a list of comps for you. Use your judgment and critically evaluate these default lists because: